The Price of Collusion: How Big Oil and OPEC Hurt American Families

By Mark Boushell

11/23/2024

In recent years, American families have watched the price of gas soar, causing ripple effects throughout the economy. From grocery bills to online shopping, the impact of high fuel prices goes far beyond the pump. While inflation and global events play a role, mounting evidence suggests another culprit: price collusion between Big Oil and OPEC.

A June 2024 investigation spearheaded by Senate Budget Committee Chairman Sheldon Whitehouse (D-RI) revealed alarming details about potential anti-competitive activities in the oil industry. The probe, launched after Federal Trade Commission findings, pointed to former Pioneer Natural Resources CEO Scott Sheffield as a key figure in attempting to coordinate with OPEC to manipulate global oil production and prices. Sheffield’s actions were uncovered during a review of ExxonMobil’s $64.5 billion acquisition of Pioneer, the largest fossil fuel merger in two decades.

The Senate Budget Committee’s investigation has since expanded to include 18 major oil companies, seeking communications with OPEC officials that might reveal illegal price-fixing schemes dating back to 2020. According to Whitehouse, these actions may have contributed to over 25% of the inflation that hurt American families after the COVID-19 pandemic.

But why does this matter so much? Gas prices don’t exist in a vacuum. They influence the cost of transporting goods, heating homes, and running businesses. When oil companies collude to artificially inflate prices, it creates a domino effect, driving up costs across the board. For example, higher gas prices directly impact the cost of shipping goods, whether it’s groceries to your local store or packages from Amazon. Every item that’s delivered involves transportation costs, and when gas prices rise, so do the costs associated with shipping everything from food to electronics.

That means when gas prices go up, so do grocery bills. Stores pass on the higher transportation costs to consumers, leading to steeper prices at checkout. Similarly, for those of us who rely on online shopping, the prices for items on platforms like Amazon often increase, as sellers raise prices to offset the growing cost of shipping. What starts as a hike in gas prices quickly turns into an increase in the cost of living for everyday Americans, no matter what you're buying.

While the government has taken steps to investigate these practices, the response feels slow compared to the urgency of the problem. Many wonder if powerful oil companies are simply too entrenched in Washington to be held accountable. With their vast resources, Big Oil has repeatedly demonstrated its ability to evade scrutiny and shape policy in its favor, often at the expense of consumers and the climate.

The allegations of collusion come alongside a broader pattern of Big Oil’s misdeeds, from deceptive claims about its role in climate change to lobbying against emissions regulations. This latest probe sheds light on how corporate greed can exacerbate economic inequality, all while the industry reaps record profits.

American families deserve better. It’s time for a stronger government response to hold these companies accountable and prevent further harm. The Senate Budget Committee’s ongoing investigation is a critical step, but it must be matched with decisive action from the Department of Justice and other federal agencies.

The collusion between Big Oil and OPEC isn’t just a story about corporate misconduct—it’s a story about how unchecked greed can ripple through an economy, harming millions of people. For the sake of consumers, the environment, and the integrity of our economy, we must demand transparency, accountability, and justice.

This article was written with assistance from ChatGPT, an AI language model developed by OpenAI.